Unfortunately, there are signs that the Chinese economy is beginning to slow down. Worse than that, there are signs that the ever-patient Chinese citizen is getting tired of producing the world’s low-priced gadgets and playthings for low wages and have taken to protesting. With so much of the world's economy now depending on China’s growth, a tumultuous Chinese slowdown could extend problems in countries that have already endured three or four years of sluggish growth.
In today’s Financial Times, Patti Waldmeir and Jamil Anderlini write that China appears to be preparing for social unrest. Quoting a senior Chinese politburo member on the need to find better ways of “social management,” Ms. Waldmeir and Mr. Anderlini note that China has witnessed a growing trend of unrest in the past few months, with workers both in Shanghai and Xian clashing with police last week over unrelated disputes.
Chinese have clashed with their government before, most notably in 1989, during the Tiananmen Square protests. While generally thought of as a pro-democracy movement, the Tiananmen protests occurred at a time of double-digit inflation and slow growth, Waldmeir and Anderlini write.